Sistema Group completes acquisition of hotel business from Wenaas Hotel Russia
Moscow – 9 March 2023 – Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS), a diversified publicly traded Russian investment company, announces that Cosmos North-West LLC, a wholly-owned subsidiary of the Corporation’s subsidiary Cosmos Hotel Group, has completed acquisition of a 100% stake in a number of Russian companies[1] – owners of ten hotels in four Russian cities – from Norway’s Wenaas Hotel Russia AS, for EUR 200 million[2].
As a result of the transaction, Cosmos Hotel Group added the following hotels to its portfolio: six hotels in St Petersburg (Park Inn by Radisson Pribaltiyskaya, Park Inn by Radisson Pulkovskaya, Park Inn by Radisson Nevsky, Radisson Blu Royal Hotel, Park Inn by Radisson Pulkovo, Olympia Garden Hotel), two in Moscow (Park Inn by Radisson Sheremetyevo, Radisson Blu Sheremetyevo Airport), one in Murmansk (Park Inn by Radisson Murmansk) and one in Yekaterinburg (Park Inn by Radisson Yekaterinburg). Altogether, the hotels have 4,078 rooms and a total floor space of 264.1 thousand square metres. In 2021, the hotels’ revenue totalled RUB 4.3 billion; in 2019, prior to the pandemic, it was RUB 6.2 billion. The total net debt of the acquired companies is negative.
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Sistema PJSFC is a publicly traded, diversified Russian holding company in sectors including telecommunications, high technology, financial services, retail, e-commerce, paper and packaging, agriculture, real estate, tourism and medical services. The company was founded in 1993. Revenue in 2021 was RUB 802.4 billion; total assets as of 31 December 2021 amounted to RUB 1.8 trillion. Sistema’s global depositary receipts are listed under the ticker “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the ticker “AFKS” on Moscow Exchange. Website: www.sistema.ru.
([2]) Including a voluntary contribution to the budget of the Russian Federation payable for the sale of assets by foreign owners and amounting to 10% of the transaction value (pursuant to an extract from the minutes of the meeting of the Subcommission of the Government Commission on Monitoring Foreign Investment in the Russian Federation dd 22 December 2022, No118/1, as approved by the Ministry of Finance of Russia dd 30 December 2022, No 05-06-10/internal document No 67867).
